Nike - Five Forces Analysis

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Short description of Porter's Five Forces analysis for… Intensity of Existing Rivalry frgg Large industry size (Nike) Large industries allow multiple firms and produces to prosper without having to steal market share... Relatively few competitors (Nike) Few competitors mean fewer firms are competing for the same customers and resources, which is a... Bargaining Power of Suppliers nike Volume is critical to suppliers (Nike) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can... High competition among suppliers (Nike) High levels of competition among suppliers acts to reduce prices to producers. This is a positive... Diverse distribution channel (Nike) The more diverse distribution channels become the less bargaining power a single distributor will... Threat of Substitutes Substitute has lower performance (Nike) A lower performance product means a customer is less likely to switch from Nike to another product... Substitute is lower quality (Nike) A lower quality product means a customer is less likely to switch from Nike to another product or... nike TOS Substitute product is inferior (Nike) An inferior product means a customer is less likely to switch from Nike to another product or... Bargaining Power of Customers nike Threat of New Competitors Strong distribution network required (Nike) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to... Strong brand names are important (Nike) If strong brands are critical to compete, then new competitors will have to improve their brand... Industry requires economies of scale (Nike) Economies of scale help producers to lower their cost by producing the next unit of output at lower... Customers are loyal to existing brands (Nike) It takes time and money to build a brand. When companies need to spend resources building a brand,... High learning curve (Nike) When the learning curve is high, new competitors must spend time and money studying the market... Entry barriers are high (Nike) When barriers are high, it is more difficult for new competitors to enter the market. High entry... What is Porter's Five Forces Analysis? WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to nike's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up nike's most important five forces statements.